If you rely on general liability coverage only, think again. General liability insurance, in most cases, only covers bodily injury, property damage, and personal injury. But if you get sued for malpractice, negligence, violation of good faith, or inaccurate advice — just to name a few — your general liability insurance will not cover you.

Mistakes Happen

No matter how seasoned of a professional you are, mistakes can still happen. Sometimes, those errors can result in a lawsuit. The high costs that come along with a lawsuit can put you out of business, and in some cases, they can even threaten your personal financial security.

Be Prepared

As your business grows and you take on more employees and hire subcontractors, you can be held responsible for any mistakes they potentially make. Professional Liability Insurance, also known as errors and omissions insurance or malpractice insurance, protects your business from the financial impact of a lawsuit should you make a mistake in relation to services provided to a client.

Having professional liability insurance is imperative, particularly if you are in a business that provides a service or professional opinion to clients. Many professions — like lawyers and CPAs — require you to have professional liability insurance before allowing you to practice. Other professions may be required to carry E&O insurance by a client or other entity before doing business them.